Corporatisation of OFBs will improve their functioning

The Cabinet Committee on Security in its meeting held on 29.07.2020, had approved to convert Ordnance Factory Board (OFB), a subordinate office of Ministry of Defence, into one or more than one 100% Government owned corporate entities, registered under the Companies Act 2013.

The Corporatisation of OFB will improve its autonomy, accountability and efficiency in Ordnance Supplies.

The Government has taken note of the strike by workers of OFB against the proposed corporatisation and their concerns in the notice dated 04.08.2020 from the three recognized Federations of Defence Civilian Employees, proposing to call an indefinite strike w.e.f. 06.00 am of 12.10.2020 by the Defence Civilian Employees of Ordnance Factories against the Government move to corporatize OFB.

An Empowered Group of Ministers (EGoM) has been constituted under the Chairmanship of Minister of Defence to oversee and guide the entire process of corporatisation of OFB, including transition support and redeployment plan of employees while safeguarding their wages and retirement benefits.

OFB products are priced on a cost based methodology without charging any profit over the cost of production for supply to the armed forces. Since OFB is nominated as a production agency for supply of core items to the armed forces, no comparison with international prices can be made..

This information was given by Raksha Rajya Mantri Shri Shripad Naik in a written reply to Dr.Santanu Sen in Rajya Sabha.

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